So you're looking at listings on line and you see a comment which says "buyer to assume assessments". Or "property in utility expansion area". WTH? Basically, an assessment balance is the cost to a property owner of improved (existing house) or unimproved (vacant lot) property for central water, sewer & irrigation lines. The Utilities Extension Project (UEP) extends City water, sewer and irrigation services to previously unserved are of the City of Cape Coral. As part of the improvements, new lift stations (pump stations) are added, and existing roads and storm drainage systems are reconstructed. Many parts of The Cape are on septic and well and as The City grows, these central services become important. Cost for the projects vary depending on the size of the area, the number of owners and the cost of the bid at the time. Parts of SW Cape have remaining balances at little as $5,000. Other parts of the SW have a balance of $20k, including the impact fee. These balances are paid ONE TIME A YEAR IN ADDITION TO YOU PROPERTY TAXES. These balances CANNOT be rolled into part of your loan (if finacing) cause they are a lien on the property. So a 5k balance may mean a payment of $500 for the year until the balance is paid off. A $20k balance could mean an additional $1,200-$1600 per year in addition to property taxes. And, there are many homes in The South Cape with a zero balance.
AN EXPERIENCED REALTOR, like me, will know how to look up the balances, the annual payment and where to find homes with or without a balance and an idea of where the next expansion project will be.
For more information, here's a link to The City's site for this specific topic: http://www.capecoral.net/uep/general_faq.php
